Stocks & Investing
Stocks and Investing
Stocks and Investing
Wed, January 26, 2011 MDVN, MDCO, MAXY, LXRX, LGND, KERX, Biomed - Genetics Stocks 26.55% undervalued
January 26, 2011 / M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Biomed - Genetics sector and these stocks are the most undervalued as of today. MEDIVATION INC (NASDAQ:MDVN), MEDICINES COMPANY (NASDAQ:MDCO), MAXYGEN INC (NASDAQ:MAXY), LEXICON PHARMACEUTICALS INC (NASDAQ:LXRX), LIGAND PHARMACEUTICALS-CL B (NASDAQ:LGND), KERYX BIOPHARMACEUTICALS (NASDAQ:KERX) are all expected to go Up as they are undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry
MDVN MEDIVATION INC 14.52 19.77 26.55% undervalued Biomed - Genetics
MDCO MEDICINES COMPANY 15.93 18.96 15.98% undervalued Biomed - Genetics
MAXY MAXYGEN INC 4.04 8.28 51.19% undervalued Biomed - Genetics
LXRX LEXICON PHARMACEUTICALS INC 1.73 2.51 31.01% undervalued Biomed - Genetics
LGND LIGAND PHARMACEUTICALS-CL B 8.69 30.32 71.34% undervalued Biomed - Genetics
KERX KERYX BIOPHARMACEUTICALS 3.97 6.16 35.56% undervalued Biomed - Genetics
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
MEDIVATION INC (NASDAQ:MDVN) - Medivation, Inc., a biopharmaceutical company, focuses on the development of small molecule drugs for the treatment of Alzheimers disease, Huntington disease, and castration-resistant prostate cancer. The companys product candidates under clinical development include Dimebon, which is in Phase III clinical trial for the treatment of Alzheimers disease and Huntington disease; and MDV3100, which is in Phase III clinical trial for the treatment of castration-resistant prostate cancer. It has collaboration agreements with Pfizer Inc to develop and commercialize Dimebon; and Astellas Pharma Inc. to develop and commercialize MDV3100. The company was founded in 2003 and is based in San Francisco, California.
MEDICINES COMPANY (NASDAQ:MDCO) - The Medicines Company operates as a global pharmaceutical company with a focus on advancing the treatment of critical care patients. The company markets Angiomax for use in patients undergoing coronary angioplasty; and Cleviprex, an injectable emulsion for the reduction of blood pressure. Its developing products include Cangrelor, an antiplatelet agent, which is in phase III clinical trial for the prevention of platelet activation and aggregation; Oritavancin that is in phase III clinical trial acts as an antibiotic for the treatment of serious gram-positive bacterial infections, including ABSSSI; and Argatroban, a phase III and NDA filed direct thrombin inhibitor used as anticoagulant for prophylaxis or for the treatment of thrombosis. The Medicines Companys developing products also include CU2010, which is in phase I clinical trial that acts as a serine protease inhibitor for the reduction of blood loss during surgery; and ApoA-I Milano, a phase I clinical trial product for the reversal of atherosclerotic plaque development and reduction of the risk of coronary events in patients with ACS. The company sells its products through sales representatives and managers. The Medicines Company was founded in 1996 and is based in Parsippany, New Jersey.
MAXYGEN INC (NASDAQ:MAXY) - Maxygen, Inc., a biopharmaceutical company, focuses on developing improved versions of protein drugs. The company utilizes its MolecularBreeding directed evolution technology platform, along with ancillary technologies, and protein modification expertise to pursue the creation of biosuperior proteins. It engages in the discovery, and research and development of multiple protein pharmaceutical programs, including CTLA-4 Ig product candidates that are designed to be CTLA-4 Ig therapeutics for the treatment of an array of autoimmune disorders, including rheumatoid arthritis, and transplant rejection; and MAXY-G34 product candidates for the treatment of chemotherapy-induced neutropenia. The company also focuses on developing biocatalytic process technologies for pharmaceutical, energy, and industrial chemical applications. Maxygen, Inc. was founded in 1996 and is headquartered in Redwood City, California.
LEXICON PHARMACEUTICALS INC (NASDAQ:LXRX) - Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery and development of pharmaceutical products for the treatment of human disease, including immunology, metabolism, cardiology, and ophthalmology. The companys drug candidates include LX1031, which has completed Phase II clinical trials for the treatment of irritable bowel syndrome and other gastrointestinal disorders; LX4211 that has completed Phase II clinical trials to treat type 2 diabetes; LX2931, which is in Phase II clinical trials for the treatment of rheumatoid arthritis and other autoimmune diseases; and LX1032 that has completed Phase II clinical trials to treat the symptoms associated with carcinoid syndrome. It also has a preclinical development drug candidate, LX7101, for the treatment of glaucoma. The company has drug discovery alliances with Bristol-Myers Squibb Company; Genentech, Inc.; N.V. Organon; and Takeda Pharmaceutical Company Limited. It also has drug development financing collaboration with Symphony Icon; collaboration agreement with Taconic Farms, Inc.; and an alliance with Nuevolution A/S, which provides access to Nuevolutions Chemetics platform chemistry technology. The company was founded in 1995 and is headquartered in The Woodlands, Texas.
LIGAND PHARMACEUTICALS-CL B (NASDAQ:LGND) - Ligand Pharmaceuticals Incorporated, a biotechnology company, focuses on the discovery and development of pharmaceuticals for the critical unmet medical needs in the United States. It offers Avinza for the treatment of chronic pain; and Eltrombopag/Promacta for the treatment of thrombocytopenia in patients with chronic immune thrombocytopenic purpura (ITP). The companys products under food and drug administration review comprise Bazedoxifene and Lasofoxifene to treat osteoporosis; and Eltrombopag/Revolade for the treatment of ITP. Its products under Phase III include Bazedoxifene/Premarin for menopausal symptoms; and Eltrombopag to treat hepatitis C and chronic liver disease. The companys products under Phase II consist of PS433540, a dual acting receptor agonist that targets the angiotensin and endothelin receptors; LGD-4665 for the treatment of ITP; Eltrombopag to treat oncology related thrombocytopenia; PS291822 to prevent COPD and asthma; and PS540446 for the treatment of psoriasis and atherosclerosis. Ligands products under Phase I comprise Eltrombopag to treat oncology related thrombocytopenia; PS095760 for leukemia; PS386113 and PS873266 for inflammation; PS948115 to treat respiratory diseases; PS248288 for the treatment of metabolic related diseases; and PS178990 for muscle wasting. Its products under preclinical stage consist of BACE inhibitor for the treatment of Alzheimers disease; LGD-4033 for muscle wasting; CCR1 antagonist and glucocorticoid receptor modulator for inflammation; Erythropoietin receptor agonist for hematological indications; and receptor modulators for androgen independent prostate cancer. Ligand has research and development collaborations with pharmaceutical companies, including GlaxoSmithKline; Wyeth; Pfizer, Inc.; Schering-Plough Ltd.; Bristol-Myers Squibb Company; Cephalon, Inc.; Celgene Corporation; and Trevena. The company was founded in 1987 and is based in San Diego, California.
KERYX BIOPHARMACEUTICALS (NASDAQ:KERX) - Keryx Biopharmaceuticals, Inc., a biopharmaceutical company, focuses on the acquisition, development, and commercialization of pharmaceutical products for the treatment of life-threatening diseases, including cancer and renal disease. The companys products under development include KRX-0401 (perifosine), a phase III clinical stage product, which is an oral anti-cancer agent that inhibits Akt activation in the phosphoinositide 3-kinase (PI3K) pathway, and also affects other pathways associated with programmed cell death, cell growth, cell differentiation, and cell survival; and Zerenex (ferric citrate), an oral iron-based compound, which completed phase II clinical stage for the treatment of hyperphosphatemia in patients with end-stage renal disease. It has strategic alliances with AEterna Zentaris Inc.; Panion & BF Biotech, Inc.; Japan Tobacco Inc.; and Torii Pharmaceutical Co., Ltd. for the manufacture and commercialization of its products. Keryx Biopharmaceuticals, Inc. was founded in 1998 and is based in New York, New York.
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